Total government expenditure projected for the 2024 fiscal year amounts to some GHS 226bn.
The projected expenditure represents approximately 21.6% of the country’s current Gross Domestic Product (GDP).
The expenditure projection according to Finance Minister Ken Ofori-Atta, reflects a reduction of 6.1% of GDP in total expenditures (commitment basis) relative to the outturn in 2022.
This large decrease comes from the combination of fiscal consolidation efforts of 4.9% of GDP, reflecting an adjustment in revenue by 1% and primary expenditure by 4% of GDP,” noted the Finance Minister.
Total revenue and grants for 2024 are, however, projected at GH¢176.4 billion (16.8% of GDP) and are expected to be underpinned by permanent revenue measures largely tax revenue measures amounting to 0.9% of GDP.
Based on the Finance Minister’s estimates for total revenue & grants and total expenditure (including arrears clearance), the overall budget balance to be financed is a fiscal deficit of GH¢ 61.9 billion, equivalent to 5.9% of GDP.
The corresponding primary balance is a deficit of GH¢5.9 billion, equivalent to 0.6% of GDP.